Tesla shares bounce on hopes Trump-Musk spat will simmer down
By Benjamin Chiou
Date: Friday 06 Jun 2025
(Sharecast News) - Shares in Tesla rebounded slightly on Friday morning on reports that former best pals Elon Musk and Donald Trump were set to have a phone call following their social media spat which tanked the stock the previous session.
The market value of the EV company lost around $150bn (-14%) on Thursday after Trump took offence to Musk's public condemnation of his "big, beautiful bill" - the president's controversial tax and spending bill, which includes multi-trillion-dollar tax breaks and will likely increase the budget deficit dramatically.
After officially leaving the Department of Government Efficiency just days ago, Musk posted on X that the bill was a "disgusting abomination", and said the people who voted for it should be ashamed.
Trump then responded, saying he was "disappointed" in his former close ally, claiming that the entrepreneur "knew the inner workings of this bill better than almost anybody".
"All of a sudden he had a problem," the president said in remarks to reporters.
After everything that quickly turned ugly, including Musk's claims that Trump is included in the 'Epstein Files', along with threats to decommission SpaceX spacecraft that is used by Nasa.
The president then suggested that the government could save "billions and billions of dollars" by terminating Musk's subsidies and contracts.
Tesla's stock had continued to fall in after-hours trading on Thursday, but was up nearly 5.5% in early deals on Friday after the Politico news outlet said that White House aides had scheduled a call with Musk to avoid an escalation of the public spat.
Even hedge fund manager Bill Ackman, called for a truce, posting on X: "I support @realDonaldTrump and @elonmusk and they should make peace for the benefit of our great country."
"You're not wrong," Musk responded in a post.
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